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86- 102884
<br />UsttF( -'w Cr VFNAP, -T$._ Borrower and Lender covenant and agree as folhows:
<br />1. Ptyla"M of Pdsd#W cud 1a4iefe4111; Prepgmeat and [ate Charges. Borrower shall promptly pay when due the
<br />principal of and interest on the debt evidenced by the Note and any prepayment and late charges due tinder the :`vote.
<br />L Fan& for Taxes oW )tawraocr. :Subject tcx applicable law or to a w6ttem waiver by Lender, Borrower shall pay to
<br />Leader on the day monthly payments are slue under the -Note, until the Note is paid in full, a sum ( "Funds ") equal to one -
<br />twelfth oft:. (il) Yearly Woes and A"esivinews which may attain prioriy over this Security instrument; (b) yearly leasehold
<br />payments or ground rents on the property, if any; (c) yearly hazard insurance premiums; and fd) yearly mortgage insurance
<br />prenuums, if any. "Thar items are called "escrow items." I_esxder may estimate the Funds due on the basis of current data
<br />f and reasonable estimates of future escrow items.
<br />The Funds shall be held in an institution the deposits or act:octr ;ts of which are insured Or guaranteed by a federal or
<br />state agency (including Lender if Lender is such an institution). Lender shall apply the Funds to pay the escrow items. Lender
<br />may not charge for holding and applying the Funds, analysing the account or Lerifyfng the roc ;ow items, unless Lender pays
<br />Horown interest an the Funds and applicable law permits Lender to make sus h a ;barge. Bor rower and Lender may agree in
<br />writing that intetem shall he paid on the Funds. Unless an agreement is made or applicable law requires interest to be paid,
<br />Gender shall not be required t o pay Borrower any interest or earnings on the Funds. lender shall give to Borrower, without
<br />charge, an annual accounnng of the Funds showing credits and debits to the Funds and the purpose for which each debit to
<br />the Funds was made. The Funds are pledged as additional security for the sums secured by this Security Instrument.
<br />If flit amount of the Funds held by Lender, together with the future monthly payments of Funds payable prior to the
<br />due dates of the escrow items, shall exceed the amount required to pav the escrow items when due, the excess shall he, at
<br />Borrower's option, either prompt;° repaid to Borrower or credited on monthly payments of Funds. If the amount of the
<br />Fund_- held by fender is not ;uf`iciem to pay the escrow items whey. Jue. Borrower shall pay to Lender any amount
<br />necessary to make up the deficiency in one or more pavinent.s as required bs fender
<br />Upon payment in fall of all ,tuns secured by this Security Instrument. Lender shall promptly refund to Borrower anv
<br />Funds held by Lender if under paragraph 14 the Property >s old err, acquired by Lender, lender shall apply, no later than
<br />immediately prior to the We of the Property or its acquisition by Lcnder. any Funds held by I.ender at the time of
<br />application as a credit against the sums ;°cured by this Security Instrument
<br />3. Application of Pasmtnts. Unless applicable law provides otherwise, all payments received by Lender under
<br />paragraphs I and 2 shall he applied first. to !are charges due under the Now second, to prepayment charges due under the
<br />Note: third. FO amounts payable under paragraph 2; fourth, to interest due; and last, to principal due.
<br />1, ('barges; f.ieas. Borower shall pay all taxes, assessments, charges, fines and impositions attributable to the
<br />Property which may attain priority over this Security- Instrument. and leasehold payments or ground rents, ii anv. Borrower
<br />shall pay these obligations in the manner provided in paragraph 2. or if not paid in that manner. Borrower shall pay them on
<br />time directly rc the person owed payment Borrower shall promptly furnish to tender all notices of amounts to be paid tinder
<br />this paragraph rf Borrower makes these payments directly, Borrower shall prOrnpth furnisn to Lender receipts evidencing the
<br />payments
<br />Horrower shall promptly discharge any lien which has pnonoi over this `Security Instrument unless Borrower: (a) agrees
<br />in writing to the payment of the obligation .. -cured by the hen in a manner acceptable to Let:der: ihl contests in good faith
<br />she lien by, or defends against enforcement of the lien in, legal proceeding, which in the Lenner's opinion operate to prevent
<br />the enfo-rcement of the lien of forfeiture Of any part of the property: or (c) secures from the holder of the hen an agreement
<br />kaljAfa0Orj to fender subordinating the lirn to rhF_ Securlty Instrument If I tinder determines that any part of the Property is
<br />sub)ec:t to a lien which may attain priority over this Securifv :nstrument, Lendrr mao M .•e Borrower a notice idrnti(ying the
<br />Tien Borrower shall baba} the ten or take one or ore of *he s lions vr.t firth abase within Jti days of the giving of notice.
<br />S. Hasard lararaace. Horrowrr ~trail keep the improvements now cxtsttng cx 6ereafrrt errctetl on the Property insured
<br />against foss by fire, hazards included within the term "extended cosuage'' and any other hazards for which Lendet requires
<br />insurance. phis urar ce s shall be tnatutained in ;he amounts and for the p cn!xis that I ender requires. The insurance carrier
<br />Providing the insurance shalt le chosen by Burrower subject it, Lender's approval which shall not he unreasonably withheld
<br />All insurance policies and renewals shall be acceptable to Lender and shalt include a standard mortgage clause. Lender
<br />shall have the right to hold the Iroltctes and renewals. if Lender requires, Borrower shall promptly give to Len der all receipts
<br />of paid premiums and renewal notices In the event of loss, Borrower shall give prouipi notice to the insurance carrier and
<br />Lender. Lender may make proof of loss if not made promptly by Borrower.
<br />Unless Lender and Borrower otherwise
<br />agree it writing, insurance proceeds shall be applied to restoration or repair of
<br />the Prop.,rly damaged, it the restoration or repair is ecunomicaBv feasible and Lender's security is trot lessened. If the
<br />restoration or repair is not economically feasble or Lcnde€'s sesvrity would he lessened, the Insurance proceeds shall be
<br />applied to the sum secured by this Security instrument, whether or not then. ;Sue, with any excess paid to Borrower. if
<br />Borrower abandons the Property, or does not answer within 30 days a notice from I ender that the insurance carrier has
<br />offered to settle a claim, then ; ender mtv collect the insurance proceeds. Lender may use the proceeds to repair or restore
<br />the Property or to pay sums secured by this Security Instrument, whether or nor then due. The 30-day period will begin when
<br />the notice is given.
<br />Unldm Lender and Borrower otherwise agree to writing, any application of proceeds to principal shall not extend or
<br />posrponc the due date of the monthly payments referred to in paragraphs t and 2 or charge the amount of the payments It
<br />undterdparispaph 19 Property Property is acquired by Lender, Borrower's right to any insurance policies and proceeds resulting
<br />Silage prior to the acquisition sha.i pa's to l ender to the extent of the sums secured by this Securi.ts
<br />Instrument unmediately prior to the acquisition.
<br />6. Presmatloa ate Mahlesaace of Property: Le"eltaids. Borrower shall not destroy, damagr or substantially change
<br />the Property, allow the Property to deteriorate or commit waste If this Security Instrument is on a leasehold. Borrower shall
<br />Comply with the Mvisronv Of the lease, and if Honower acquires fee title to the progeny, the leasehold and fee title shall not
<br />merge unless Lender agrees to the merger in writing.
<br />?. Prwlt+c"" of Leaief'o Rights in the Peoperry; -"'ample Iavwraace. if Borrower fails to perform the _ovenants and
<br />agteerntnis contained to this Security Instrument, or there is a legal prcviceeiiing that ntay significantly affect t ender's rights in
<br />the Pruperay (such as a proceeding in hankrxiptcy probate, for condemnation of to enforce laws cr regulationsi, then tender
<br />may do turd tray for whatever is r•.ecesvari to protect the value of the property and 1 ender', rights it!. the Property I ender's
<br />actions may tnciude pasyirtt any sums a red by a lien which ha.i priority over tins Secants InstrunFCnt, appearing in Snit,
<br />paring reaaxnable atrcv.nry's fens and er.r. *.tip on the PTO -Ttv it) :Hake repairs lit ough l en =Jet ma. take actie•r. :,it ter Slits
<br />tsauagra}sio ' Lender does not have do , •iny auKrt;nts di horsed !. f rnctrt ,ender t*: <.
<br />addaw,nai de#r paragfa h 'shad
<br />v!' lkrtawer acts* . by !his 'aecirtt•: Instrument + flar,—Cr and I e�,te, agrr.r ""her .r":, :
<br />pavinerst rbesoe;tysourfty shall hear inetevi Irani the data of drsburat•tnent r
<br />2.1 �f.r 'w (.Y ;r :3.0 :hill �rsai' t`C f' 't "I , ,e..,. v:l,f e,l
<br />'J�Nt tiL [.tee frayss, Eve ^der >e. ILPtrnwt. .eci {�Uext,ng :'vyn,ant
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